Maryland Security Deposit Rules: Caps, Lawful Deductions & Penalties (2026)

How much a landlord can charge, and which deductions are actually legal

At a glance

Who this covers — and who it does not

This page covers how much a landlord may charge in Maryland, and which deductions from a residential deposit are lawful. It assumes the tenancy has ended and the question is what may be withheld.

It does not cover:

How much the landlord may charge in the first place

One month's rent by default (Md. Real Prop. § 8-203(b)(1)). Up to two months' rent is allowed only if the tenant has qualified for utility assistance through DHS, the lease requires direct utility payments to the landlord, and the parties agree in writing (§8-203(b)(2)).

Caps frequently carry exceptions — smaller landlords, furnished units, or pets are treated differently in most states. Read the provision itself rather than relying on the headline figure.

Which deductions the statute permits

Claimed deductionPermitted in Maryland
Unpaid rentPermitted, if substantiated
Damage due to breach of leasePermitted, if substantiated
Damage by the tenant (or household) in excess of ordinary wear and tear to premises, common areas, major appliances, and furnishingsPermitted, if substantiated

Which deductions the statute does not permit

Claimed deductionPermitted in Maryland
Ordinary wear and tearNot permitted
Any retention without a written list + itemized statement within 45 daysNot permitted
Any retention after failure to comply with the notice requirements (forfeiture)Not permitted

Whether a specific charge is lawful depends on the facts — how old the damage is, whether the lease addressed it, and whether the landlord can document the cost. A charge being in the "permitted" column does not make it automatically collectable.

Who has to prove what

The landlord must provide a written list of damages and itemized statement of costs within 45 days. Failure to comply forfeits the right to withhold any part of the deposit for damages. The landlord bears the burden of establishing a reasonable basis for any retention.

In Maryland the burden sits with the landlord. This matters strategically: if the burden is theirs, your task is to request the documentation rather than to prove the deduction wrong. Md. Real Prop. Code § 8-203(g)(1), (g)(2) ↗

What you can claim if deductions are unlawful

Tools that exist in Maryland

45 days — one of the longer return windows

Maryland gives the landlord 45 days to return the deposit, longer than the 14/21/30-day windows in many states. Do not confuse it with a 30-day deadline.

Md. Real Prop. Code § 8-203(e)(1) ↗

Up to threefold of the withheld amount

On failure to return without a reasonable basis, the tenant may recover up to threefold the amount withheld (not the full deposit), plus reasonable attorney's fees.

Md. Real Prop. Code § 8-203(e)(4) ↗

Interest on the deposit

Maryland is unusual in requiring interest on deposits of $50 or more held at least 6 months, at the greater of the daily U.S. Treasury yield curve rate (1-year) or 1.5% per year, not compounded. The landlord must return this interest with the deposit.

Md. Real Prop. Code § 8-203(e)(1), (e)(2), (e)(3) ↗

One month cap by default

The default deposit cap is one month's rent, regardless of the number of tenants. Two months is allowed only under narrow conditions (utility-assistance qualification, direct utility payment, written agreement).

Md. Real Prop. Code § 8-203(b) ↗

Common landlord defences and how to answer them

““I kept the deposit for damages.””

Maryland requires a written list of damages and an itemized statement of costs mailed within 45 days. Without that, you forfeit the right to withhold. Provide the list and itemized statement, or return my deposit with interest.

Md. Real Prop. Code § 8-203(g)

““You never asked to be at the inspection.””

You were required to advise me in writing of my right to be present at the inspection when I paid the deposit. Failing to do so forfeits your right to withhold for damages.

Md. Real Prop. Code § 8-203(f)(1)(vi), (vii)

““The deposit covered ordinary wear and tear.””

Ordinary wear and tear is not chargeable. You may withhold only for unpaid rent, breach-of-lease damage, or damage in excess of ordinary wear and tear.

Md. Real Prop. Code § 8-203(f)(1)(i)

Where sources disagree

Some widely circulated summaries of Maryland deposit law state things the statute does not say. We list the disagreements rather than picking a side silently.

Return deadline (30 vs 45 days)

SourceWhat it says
Some generic summaries30 days
Md. Real Prop. Code § 8-203(e)(1)45 days

What we follow: 45 days

The statute plainly states "within 45 days after the end of the tenancy." Reporting 30 days understates the landlord's window.

Deposit cap (1 vs 2 months)

SourceWhat it says
Some summaries2 months' rent
Md. Real Prop. Code § 8-203(b)1 month by default, 2 months under narrow conditions

What we follow: 1 month by default (2 months under narrow conditions)

The default cap is 1 month. The 2-month option requires utility-assistance qualification plus direct utility payment plus written agreement — not the general rule.

Sources and how to verify them

Every figure on this page comes from the official text, not from a summary. The table below lists each provision used and the date it was last checked against the source.

StatuteLast verifiedSource
Md. Real Prop. Code § 8-203(e)(1) 2026-10-15 official text ↗
Md. Real Prop. Code § 8-203(e)(4) 2026-10-15 official text ↗
Md. Real Prop. Code § 8-203(g)(1), (g)(2) 2026-10-15 official text ↗
Md. Real Prop. Code § 8-203(e)(1), (e)(2), (e)(3) 2026-10-15 official text ↗
Md. Real Prop. Code § 8-203(b) 2026-10-15 official text ↗

Primary reference: Md. Real Prop. Code § 8-203. Where the official text and a secondary summary disagree, this page follows the official text and says so. Amendments are recorded on the site changelog.

When you need a lawyer instead of a tool

A self-help letter is the right starting point for a single deposit you can document. Get legal help if:

Local legal aid organisations and tenant unions offer free help for qualifying cases. They are independent of this site — we list them because they are the right place to go, not because they link here.

More Maryland guides

Maryland Security Deposit Return

→ All Maryland tenant rights topics

Common questions

What can a landlord not deduct from my Maryland deposit?

The statute does not permit deductions for: ordinary wear and tear; any retention without a written list + itemized statement within 45 days; any retention after failure to comply with the notice requirements (forfeiture).

Who has to prove that a deduction was justified in Maryland?

The landlord. The landlord must provide a written list of damages and itemized statement of costs within 45 days. Failure to comply forfeits the right to withhold any part of the deposit for damages. The landlord bears the burden of establishing a reasonable basis for any retention.

How much can a landlord charge as a deposit in Maryland?

One month's rent by default (Md. Real Prop. § 8-203(b)(1)). Up to two months' rent is allowed only if the tenant has qualified for utility assistance through DHS, the lease requires direct utility payments to the landlord, and the parties agree in writing (§8-203(b)(2)).

Is ordinary wear and tear deductible from my Maryland deposit?

No. Ordinary wear and tear